University of the East

Caloocan City

Cost Accounting October, 2020

Quiz 05: Job Order Costing Instructor: John Bo S. Cayetano

Numbers 1 – 3
The following information pertains to the Mars Company in November.

Direct materials Direct labor Factory overhead

Job 01 38,400 54,000 ?
Job 02 ? 60,000 ?
Job 03 68,040 ? 66,600
Mars Company applies factory overhead for Job 01 at 140% of direct labor cost and at 150% of direct labor
cost for Jobs 02 and 03. The total cost of Job 01 and 02 is the same.

1) What amount of factory overhead is applied to Job 01?

A. 66,000 C. 36,000
B. 75,600 D. 90,000
2) What is the total amount of direct materials for Job 02?
A. 44,400 C. 18,000
B. 90,000 D. 23,400
3) Assume that Job 01 and 03 are not completed as of November. What is the balance of work in process
inventory at the end of November?
A. 271,440 C. 361,440
B. 347,040 D. 227,040

Numbers 4 – 5
Lotus Corporation charges factory overhead to production at a predetermined rate based on direct labor
cost. The following data are given on its production for the month of January:

Job 01 Job 02 Job 03 Job 04 Total

Work in process, January 1
Direct material 36,000 67,000 103,500
Direct labor 14,400 29,250 43,650
Applied factory overhead ? ? 34,920

Cost added in January

Direct material 13,500 38,250 81,000 40,500 173,250
Direct labor 5,400 20,250 33,750 13,500 72,900
Job numbers 01, 02 and 03 were completed during the month. Job numbers 01 and 03 were sold.

4) The total cost of goods put into process is:

A. 226,890 C. 428,220
B. 486,540 D. 239,670
5) The total cost of goods manufactured is:
A. 421,740 C. 304,470
B. 363,420 D. 239,670

6) AXL Corporation uses a predetermined overhead rate based on machine hours to apply factory overhead
to jobs. The company manufactures tolls to customer specifications. The following data pertain to Job
01:
Direct materials used P 21,000
Direct labor hours worked 1,500
Direct labor rate per hour 8
Machine hours used 1,000
Predetermined overhead rate per machine hours P 15
What is the total manufacturing cost recorded on Job 01?
A. 48,000 C. 51,500
B. 44,000 D. 55,500
Cost Accounting by: John Bo S. Cayetano, CPA, MBA Page 1 of 3
Numbers 7 – 8
China Corporation used the job order costing system and the following information is available from the
records:

Materials used P 1,020,000

Direct labor per hour 8.50
Factory overhead applied 120%
Direct materials were issued as follows for each job, 30%, 25% and 25% to job 10, 11 and 12, respectively.
The balance was considered indirect.

Direct labor hours per job are 21,250; 26,350 and 35,700, respectively. Indirect labor is P280,500. Other
actual factory overhead costs totaled P306,000.

7) If job 12 is completed and transferred, how much is the cost of goods manufactured?
A. 922,590 C. 842,670
B. 821,950 D. 1,186,090
8) The total work in process ending inventory is:
A. 1,625,965 C. 703,375
B. 1,451,120 D. 965,600

9) Julius Corporation applied factory overhead to jobs on the basis of direct labor-hours. The following
information related to the company’s 2021 data:

Estimated Actual
Direct labor hours 30,000 29,600
Factory overhead cost P 600,000 P 574,240
What was Julius under-applied or over applied factory overhead for the year 2021?
A. 8,000 under applied C. 17,760 over applied
B. 17,760 under applied D. 8,000 over applied

Numbers 10 – 11
New Corporation’s work in process inventory on February 1 per general ledger is P141,360. The job cost
sheet on February is shown below:

February 1 data Job 01 Job 02

Materials P 37,200 P 49,600
Direct labor 18,600 15,500

Amount charged to production

February: Job 01 Job 02 Job 03 Job 04
Direct materials 18,600 12,400 37,200 27,900
Direct labor 6,200 9,300 16,120 12,400

Factory overhead is charged based on direct labor cost. Job 01 and 03 are completed during the month.

10) The total amount of the cost of goods manufactured is:

A. 158,472 C. 164,672
B. 197,160 D. 133,920

11) The total work in process inventory is

A. 149,420 C. 27,280
B. 75,020 D. 47,740

12) Pink Company incurred the following costs during the month; direct labor, P120,000; factory overhead,
P108,000, and direct materials purchases, P160,000. Inventories show the following cost:

Beginning Ending
Finished goods P 27,000 P 30,000
Work in process 61,500 57,500
Direct materials 37,500 43,500
How much is the cost of goods manufactured?
A. 443,500 C. 386,000
B. 382,000 D. 388,000

Cost Accounting by: John Bo S. Cayetano, CPA, MBA Page 2 of 3

13) Last month, Pare Company placed P60,000 of materials into production. The printing department used
8,000 labor hours at P5.60 per hour and the Binding Department used 4,600 hours at P6.00 per hour.
Factory overhead is applied at a rate of P6.00 per labor hour in printing and P8.00 per labor hour in the
Binding department. Pare’s inventory show the following balances:

Beginning Ending
Finished goods P 22,000 P 17,000
Work in process 15,000 17,600
Direct materials 20,000 18,000

What is the total cost of goods sold?

A. 219,600 C. 108,000
B. 214,600 D. 217,200

14) The factory ledger of Diamond Corporation contains the following cost data for the year ended
December 31, 2021:

Beginning Ending
Raw materials P 150,000 P 170,000
Work in process 160,000 60,000
Finished goods 180,000 220,000
Raw materials used 652,000

Total manufacturing cost charged to production during the year (including raw materials, direct labor
and factory overhead applied at the rate of 50% of direct labor cost) amounted to P1,372,000.

What is the cost of raw materials purchased and direct labor charged to production during the year:

Raw Materials Purchased Direct Labor

A. 632,000 240,000
B. 672,000 480,000
C. 672,000 720,000
D. 360,000 480,000

15) Woodman Company applies factory overhead on the basis of direct labor hours. Budgeted and actual
data for direct labor and overhead for the year are as follows:

Budget Actual
Direct labor hours 600,000 550,000
Factory overhead costs P 720,000 P 680,000

The factory overhead for Woodman for the year is

A. Overapplied by 20,000 C. Under applied by 20,000
B. Over applied by 40,000 D. Under applied by 20,000

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Cost Accounting by: John Bo S. Cayetano, CPA, MBA Page 3 of 3